CI GAM launches new diversified alternative fund

Discover CI GAM's latest offering designed for diversified, crisis-resistant investing

CI GAM launches new diversified alternative fund

CI Global Asset Management (CI GAM) has expanded its lineup of alternative funds with the introduction of the CI Auspice Alternative Diversified Corporate Class (the Fund).

The Fund is a systematic, trend-following, multi-strategy mandate, designed to deliver returns that are uncorrelated with traditional asset classes.

Employing a disciplined, rules-based approach, the Fund invests in commodities and other financial interests, capable of taking both long and short positions.

Its objective is to provide returns uncorrelated with other alternative strategies and fixed income, while also being negatively correlated to equities. This strategy aims to enhance diversification and offer the potential for ‘crisis alpha’ – a term referring to outperformance during market downturns.

Additionally, the Fund's focus on commodities and trend-following strategy is intended to serve as a hedge against inflation.

“CI Auspice Alternative Diversified Corporate Class is a unique mandate that offers investors enhanced diversification benefits and potential downside protection in volatile markets,” states Jennifer Sinopoli, executive vice-president, and head of distribution for CI GAM.

She emphasized the strength it brings to portfolios in the current investment landscape, which has been significantly altered by recent spikes in inflation and interest rates.

Most of the Fund's assets are invested in units of Auspice Diversified Trust, managed by Auspice Capital Advisors Ltd. (Auspice), which also acts as the sub-advisor to the Fund.

“With a 17-year history of delivering commodity and crisis alpha to investors, Auspice Diversified Trust has the longest track record in its category in Canada, and we’re pleased to partner with CI GAM to provide expanded access to this successful strategy,” said Tim Pickering, chief investment officer and co-founder of Auspice.

The team at Auspice, established in 2006, brings extensive expertise in commodities, trading, risk management, and quantitative investment strategies. Auspice is also the sub-advisor to the CI Auspice Broad Commodity Fund, available both as a mutual fund and ETF.

Sinopoli further highlighted CI GAM's continuous efforts to expand and diversify its alternative investment solutions. This includes leveraging the expertise of CI GAM’s own investment team and engaging specialized third-party managers like Auspice.

She expressed a strong belief in the benefits of alternative investments for individual investors and CI GAM’s commitment to providing access to sophisticated, institutional-style solutions.

CI GAM has a substantial lineup of liquid alternatives mandates, with approximately $3.8bn in total assets as of December 31, 2023 (excluding cryptocurrency funds). CI Auspice Alternative Diversified Corporate Class is available for an initial minimum investment of $500. It has a medium risk rating and a Series F management fee of 1.00 percent.

The Fund also imposes a performance fee, which is contingent upon a hurdle rate and a high-water.a